Astaire Securities this morning said it was encouraged with the latest step-out reverse circulation drilling results from Baobab Resources Plc (LON:BAO), the mining group behind the Tete iron ore project in Mozambique. The figures suggest areas of higher grade mineralisation, with South Zone results showing higher mass recovery than the Chitongue Grande resource area. A detailed metallurgical study has been commissioned to determine how to optimise mineral processing. Elsewhere, Astaire said that support services group Latham(james) (LON:LTHM) was well positioned to withstand any further deterioration in the trading environment, should the UK housing market experience a double dip, with net cash on the balance sheet. The company has just received a further £0.36m from the sale of the Clapton site from enhanced development. “We upgraded our forecasts back in June and remain confident that the company will perform well going forward,” Astaire said.
HB Markets reiterated a “buy” recommendation at Alkane Energy (LON:ALK) on news that the group had extended the tolling arrangement with GDF Suez that sees its electricity generation capacity use piped in gas rather than coal mine methane. The contract doubles capacity to 10MW, thereby potentially doubling the revenues to be earned. Digital Marketing Group Plc (LON:DIGI) also earned a renewed “buy” rating on news that current trading is in line with management expectations. As expected market conditions have improved slowly and the recovery is modest. HBM said it believed a shift in spending in favour of online and mobile channels and away from traditional media would benefit the group in the long term. Meanwhile, HBM maintained its “buy” recommendation for Regenersis (LON:RGS) , which has secured a four year, multi-million pound contract with DHL Supply Chain. The group will provide repair and refurbishment of mobile devices, as well as the systems to drive down total service costs. HBM said it was “encouraged” by the contract win, “which highlights the group’s ability to develop new service models for existing customers”. Finally, Servicepower Technologies Plc (LON:SVR) and Tandem Group (LON:TND) were both marked as “hold”.
Evolution Securities retained a “buy” rating for support services group Serco Group (LON:SRP) on headline results that were in-line with expectations. “Guidance was unchanged and the outlook from management was as confident as ever,” the…
